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2. THE FRESH TALENT INITIATIVE - AN OVERVIEW
2.1 The Fresh Talent initiative ( FTI) was launched in 2004 in the context of growing concerns about the demographic challenge facing Scotland (low fertility and an ageing, declining population) and skills shortages in the Scottish economy. The FTI therefore looked to address this by presenting and promoting Scotland as an attractive location to live, work, study and do business. 1
2.2 The FTI focused attention on communicating Scotland abroad; establishing and running the Relocation Advisory Service, an advice centre for those interested in moving to or staying on in Scotland; and activities targeted at particular groups, eg universities and international students. An overview and assessment of the FTI and its different strands was published in 2006 and concluded that the rationale for the initiative remained sound. 2
Fresh Talent: Working in Scotland Scheme
2.3 One of the most high profile activities within the FTI is the Fresh Talent: Working in Scotland Scheme (hereafter referred to as FTWiSS), which was launched in 2005 and entitled international graduates from Scottish universities to live and work in Scotland for 2 years without the need of a work permit.
2.4 In terms of process, the scheme is managed by the Home Office because Immigration is the responsibility of the UK Government as specified under Schedule 5 of the Scotland Act 1998. To qualify, applicants need to have graduated from a Scottish university or college on a Higher National Diploma ( HND), degree, Masters or PhD course, and have resided in Scotland for an appropriate period during their studies. The applicant, and any dependents with them, must be able to show that they can maintain themselves without applying for public funds.
2.5 Applicants can seek entry to the scheme either while they are in Scotland following completion of their studies, if they still have extant leave to remain as a student, or from outwith the UK for up to 12 months following completion of their studies. Students are entitled to apply to bring their spouse or, if unmarried, their partner, and/or any children under the age of 18. The fee is £335 for postal applications and £500 for applications made in person at a Public Enquiry Office. 3
The Objectives of FTWiSS
2.6 Because FTWiSS was never articulated in terms of targets and performance indicators - in some senses this was actively avoided - it is difficult to make an assessment of its overall impact. However, for the purposes of this paper, the scheme's focus on international students outwith the European Economic Area ( EEA) is thought about in 3 parts:
- Attracting students to study in Scotland
- Enabling graduates to stay on after graduation to work and live in Scotland
- Enhancing students' experience of Scotland as a place to live and work
2.7 FTWiSS should not be considered in isolation as other strands within the FTI, like Scottish Networks International and the Challenge Fund, look to complement and supplement its objectives. However, for the purposes of this paper, attention will be focused on the effectiveness of FTWiSS and opportunities for development in the future.
The Future of FTWiSS
2.8 In March 2007, the Home Office announced that FTWiSS would be extended to cover students who graduate with post-graduate diplomas or certificates. Within that, the Home Office also launched a new International Graduate Scheme ( IGS) which gave international graduates from a UK institution a one year leave to remain. 4FTWiSS and IGS were both subsumed into the new Points-based system for managed migration in June 2008.
2.9 Under the Points-based migration system, FTWiSS was replaced by the new Post-Study category. As far as Scotland is concerned this amounted to a change of name rather than a change of substance. The criteria for graduates from Scottish institutions applying for the Post-study category are the same as the criteria for FTWiSS. This new category within Tier One is open to all UK graduates with an appropriate degree, post-graduate certificate or post-graduate diploma and in effect the scheme arrangements are being extended to the whole of the UK. The only difference between Scotland and the rest of the UK is that those qualifying with an HND from a Scottish institution are eligible whereas graduates with the equivalent qualifications in other parts of the UK are not eligible.
2.10 In Scotland, a new Scottish Government was created in 2007 and it has placed an emphasis on increasing sustainable economic growth. Its Government Economic Strategy highlights the importance of skills and learning as well as population growth in achieving this. Population growth is seen as key to the Scottish Government's ambition of sustainable economic growth and recent analysis into the GDP growth differential between Scotland and the UK suggests that nearly half of the gap is due to the UK population growing at a higher rate than in Scotland. 5
2.11 In relation to powers reserved by the UK Government, like immigration, the Scottish Government intends to ensure that Scotland's needs are effectively represented at a UK Government level and aims to seek greater responsibility over migration policy. 6 The Scottish National Party's 2007 Scottish parliamentary election manifesto raised the idea of a Scottish Green Card. 7
The UK Government's Points Based Immigration System
2.12 During 2008, the UK government is implementing a new managed migration system for non-European migrants wishing to come to the UK to work, study and train. It will be broken into 5 tiers, each of which will have different conditions, entitlements and entry requirements. International students will have to apply under Tier 4 to study in the UK and, if looking to stay in the UK beyond graduation, can apply for Tier 1:post study as a highly skilled migrant. Tier 1 does not require sponsorship. Application through any other Tier would require sponsorship from an employer or educational institution. 8
2.13 In order to assess the levels of skill shortages across the UK that might be addressed through migration, the UK Government has set up the Migration Advisory Committee ( MAC). It is currently undertaking a review of skills shortages across the UK in order to produce a robust list that can be used to help inform a managed migration policy. The shortage list will refer only to jobs that are referred to as Tier 2 (jobs regarded as skilled). These lists will comprise occupations where, in the MAC's view, there are shortages that justify enabling employers to bring migrants in more easily. Scotland is expected to have a separate list reflecting its own individual pressures. 9
Policies Towards International Graduates
2.14 As the International Centre for Migration Policy Development pointed out recently in its "Comparative Study on Policies Towards Foreign Graduates", "policies to retain foreign graduates have become a standard instrument in selection systems for highly qualified migrants". 10 Not only do international students bring benefits to the academic sector in terms of tuition fees and capacity, they have also come to be viewed as a source of highly-skilled, accessible migration. Academics have also noted the change in approach towards international students: John Salt and Jane Millar have started to write about a "new paradigm in the mobility of international students", with global employers taking an increasing interest in what universities and governments are doing. 11
2.15 Much of this debate is a result of the highly competitive, global environment with numerous countries using their education and immigration systems to attract and retain international graduates. For instance, the number of students studying overseas has increased dramatically in recent years, with large numbers going to study in the UK, USA and Germany. 12
2.16 Policies are being developed to help international graduates stay and work in the hope that this will contribute to economic growth. In 2003-04, international students brought around £128 million through tuition fees alone to Scotland and increasing effort is focusing on the extent to which these benefits can be extended and enhanced beyond graduation. 13 Policy interventions include: extending rights to work part and full time whilst studying; a wider range of options to stay after graduation, eg extra points for graduating from a national university or more accessible residency rights for highly skilled migrants; and a special residency permit for the purpose of finding a job for a certain period after graduation. 14
2.17 This debate should be seen in a wider context. Concerns have been raised on numerous occasions about the impact on sending countries, as they "lose" their best brains to the countries that are already economically strong. However, debate around this issue is moving beyond the two-dimensional analysis of brain-drain and brain-gain, to exploring the possibilities of a brain circulation whereby benefits can be thought about in terms of the sending and receiving countries and, as can often be the case, many international students do return to their country of origin. The i-graduate survey showed that only 5% of international students surveyed intended to stay on in Scotland indefinitely, although 17% indicated an interest in using Fresh Talent to stay on in the short-term. 15
2.18 Brain drain is also an issue for countries that might be conceived as net-receivers of international students, like Scotland. Historically Scotland has been classed as a net-emigrant country, with more people leaving than coming; this has not only led to responses such as the FTI, but efforts to engage with its diaspora too, in the hope that some ex-pats may decide to return. Countries such as Taiwan have been highlighted as tapping into the benefits of brain circulation and credited with reversing their historical brain drain situation. 16
2.19 The impact of these policies, particularly in terms of their ability to influence international students' decisions to stay on and work and live after graduation, is key. However, data is not collected consistently on retention rates. 17 Little has been done to undertake longitudinal research of the kind that would allow for the evaluation of particular measures and policies and the assessment of their impact on the experiences of international students. The New Zealand and Australian governments have completed research of the pathways of international students, to gain a sense of both: i) the stages at which an international student might be making certain decisions about their future; and ii) how likely different groups within the cohorts they tracked were to stay on after graduation. 18
2.20 Much of the activity set out here is focused around the immigration systems and what they can do to influence international students, but, in many ways, these are enabling instruments which provide the framework around which individuals can make decisions. There are a whole range of other activities - eg marketing and communication, information sharing, support services and networks - that have a significant part to play too in ensuring that people decide to study in a certain location/institution, that their experience is an enjoyable one and, if they decide to stay on, that they feel they are able to progress and develop in doing so.
2.21 Looking ahead, policy discussion and thinking may begin to turn to focus more on the subtleties of attracting and retaining international students. For instance, John Salt and Jane Millar have highlighted the potential for universities and industry to form partnerships that reflect the internationalisation of education and business in ways that could benefit the international (and domestic) students alike as they make the transition from study to work. 19
The Student Population Studying at Scottish Higher and Further Education Institutions
2.22 In 2006-07, there were nearly 43,000 non- EU students studying at Higher Education establishments in Scotland. This constitutes a reasonable proportion of all students - over an eighth - and the number of international students has been increasing in recent years (see Annex A). Between 2005-06 and 2006-07 alone the number of students rose by nearly 3,500 (see Annex B).
2.23 This change can be explained, in part, by a surge in the number of students from China studying at Scottish Higher Education institutions - but from wholly outside the UK. In this single year there was an increase of 3,000 students: from just under 1,000 to nearly 4,000.
2.24 Lessons can be learned from tracking this group in order to understand the drivers of this sudden increase and this paper explores some of the factors relating to FTWiSS. In particular, the speed with which change can occur is worth noting and it is important that thought is given to what happens to these students who engage with Scotland. Student numbers are large enough to make an impact on Scotland's economy, but this is only true if an increase occurs repeatedly over a number of years. Having policies in place that focus on international students so that they can make a telling contribution and increase the number of people working in Scotland is crucial. Lessons from FT:Wi SS can play an important role here.
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